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What happens if the UK leaves the EU with ‘no deal’?


An overview of the potential pitfalls and opportunities facing UK forwarders should the UK opt for a ‘no-deal’ Brexit at the end of this month


Because of the politics surrounding Brexit, BIFA has limited itself to reporting the facts, without comment, from sources such as GOV.UK. Having attended numerous meetings with government and other trade associations, this is a brief summary of the main points to consider should the UK exit the EU in a ‘no-deal’ scenario on 29 March. At this point we must emphasise that, even with a deal and a transition arrangement, change is inevitable, but at least it will be phased in over a longer period of time. Three of the great frustrations regarding the whole process are the


impossible timelines being set, the almost total lack of clarity regarding what procedures will have to be followed and a political failure to comprehend that neither business nor government will be ready to fully adopt these new procedures on 29 March 2019. Some of the ill-informed comments made about the impact of Brexit have added to the confusion, particularly amongst the general public. It is clear that we have a very different view on what procedures will be used to some of the EU members. For instance, the French are placing a heavier emphasis on Transit than we are. From a government viewpoint, it is collating all the data on one


website – https://euexitbusiness.campaign.gov.uk/. However, the problem is the sheer volume of information, making it difficult to find the precise information that the reader is searching for. From what BIFA has currently been advised by HM Revenue &


Customs (HMRC), in a no-deal scenario some form of a safety and security declaration will be required immediately. It is also envisaged that a pre-lodged customs declaration will be required for goods destined to the UK. Conversely, for export cargo to the EU a


combined Safety and Security and Customs declaration will have to be made via the Export Control System. The crucial points to consider will be the government systems to use and the compatibility of the user’s present software. Consideration will have to be given to documentary requirements, and also to ensuring that clients have an EORI Number.


UK-EU traders The question that no-one can answer is how many of those UK companies who currently trade solely with the EU will continue to do so? Nobody is sure, but if nothing else government has very actively encouraged such businesses to register online for an EORI number and has asked trade associations and their members to highlight to traders the importance of registering online for this number. BIFA has highlighted the need for Members to be especially diligent


when taking customs-related instructions from such clients as they will be largely unfamiliar with such regulatory requirements. The key points are to ensure that the trader is established in the UK and also that it appoints a BIFA forwarder as its direct representative in all its dealings with HMRC. There is a very large amount of information regarding the likely


changes that Brexit will bring, which can be found at the previously mentioned government website. The website does prompt users to ask relatively simple questions to find


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March 2019


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